Hourly Rate ?

[steffysmom 14]

Just curious for those of you who own a pressure washing business, do you pay yourself an hourly rate for the jobs that you complete on a weekly basis (like a regualr weekly pay check) or do you take a "draw" from the profits on a monthly basis ?? If you are paying yourselves an hourly rate, how did you determine what that rate would be ?

[Rfitz 14]

Unfortunately, as a business owner you really cant compute that , at least in this trade, there are so many variables, each job can vary so much in how much you actually charge hourly for a typical job, sometimes I average $250 an hour and other times I only make $75 an hour, then you have to deduct all your employees hours per job, chems used, fuel, advertising, insurance etc..

basically you have to go on gross sales, deduct expenses and that is basically what you bring home, there are just too many variables in this biz to say ok I make a flat....$ amount per hour per year.. what I can tell you is this after our year is over, after all the major headaches of running your own biz, I aim for somewhere between $100 and $125 an hour NET 40 hours a week for say 35-45 weeks after all expenses have been paid, if you arent making at least that per hour I find with the hours, headaches etc.. it is hardly worth the effort...

I hope this helps

[Scott Stone 604]

I take a monthly draw. This is the amount used to declare for Social Security. It is enough to get the Max from SS, but not so much that I am paying extra in. Of course, it is debatable if it will still be there when I finally decide I am too old for this crap anymore. The rest of my income comes in the form of a distribution of the profits. That alone, as a corporation, saves me 15%+ off my gross in FICA Taxes.

[R L S 14]

I have myself on salary. Then I write a bonus to me for any extra money above what I need to run the biz.

[Mathew Johnson 123]

My salary is 50 percent of what I bill out.

[Chappy 138]

I jsut take the distrubution of profits.

[Ron Musgraves 240]

I hate to say it, you folks that pay high salarys are getting hammered in tax. or paying more than you need too.

I did it for years, now i pay very little and still have income. you can also distribute salary to spouse leagally. if your spending and reinvesting money you can also save dollars.

you guys in FL have no state income taxes, thats great.

those bonuses are often 27% to 49%, thats silly. if your not paying it then if you ever get audited your not going to like the bill.